A Blue and White real estate accomplishment: An urban renewal project in Beersheba's Dalet neighborhood currently under construction by Africa-Israel, BSR, and Electra Real Estate has been chosen to appear in a prestigious exhibition at the World Urban Forum (WUF) on the subject of urbanism.

Follow Israel Hayom on Facebook, Twitter, and Instagram

The event, organized by United Nations, is one of the most important in the construction industry and is currently taking place in the town of Katowice, Poland to promote innovation and sustainable construction in urban projects.

Citing its reasons for displaying the project on Yaakov Avinu Street, the WUF selection committee wrote: "The project is located in one of the most important urban locations in Beersheba, bordering on the city's main transportation artery, Ben-Gurion University, Soroka Medical Center, a planned high-tech quarter, and the train station. The plan aims to replace existing old residential buildings with high-density mixed-use buildings, the addition of more schools, expansive public spaces, trees, and commercial fronts to create a vibrant urban fabric."

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

Assaf Simon, CEO of Africa-Israel Urban Renewal said: "I am proud that the project has been chosen to be a model project serving as an inspiration for senior executives in the global construction and urban renewal industries. The project that we lead are leading together with BSR and Electra corresponds directly with the essence of the forum and the reason it was founded in the first place – to find solutions for the coming years for growing urbanism. In this particular project, 130 existing apartments will be replaced with 850 new high-standard housing, alongside 20,000 square meters of offices 5,000 square meters of commercial space, and a school with 12 classrooms to serve the residents of the area. The choice of the project from among thousands of projects throughout the world shows the strength of the innovation and planning invested in it." 

This article might include sponsored and commercial content/marketing information. Israel Hayom is not responsible for its nature or its credibility. The publication of such content or information shall not be considered a recommendation and/or an offer by Israel Hayom to purchase and/or use the services or products mentioned in this article.

The post Beersheba neighborhood featured in prestigious UN exhibition appeared first on www.israelhayom.com.

The potential for foreign real estate investment in Israel, new technologies in the construction sector, and the day after the Russia-Ukraine war were just some of the topics on the agenda at a first-of-its-kind international conference that took place this week in Israel.

Follow Israel Hayom on Facebook, Twitter, and Instagram

The event brought together representatives of the Confederation of International Contractors' Associations (CICA)  and senior real estate figures in Israel to examine possible collaboration and perhaps investments in Israeli technology, and, of course, Israeli real estate.

During the conference, the visitors viewed presentations by Israeli high-tech companies working in the framework of the joint technology initiative between the Israel Builders Association, the Ministry of Construction and Housing, the Ministry of Economy and Industry, and ConTech, a construction technology hub. Among the companies participating in the event were Veev, which has raised 400 million shekels, and a group of startups that have developed construction technologies, including a system to manage electricity and lighting, a system for pricing construction costs, tools for rapid construction, safety tools and alternative energy solutions.

During the event, the participants discussed the potential for foreign investment in Israeli real estate. Even though the construction industry in Israel is different from that in the West, it enjoys enormous demand for real estate assets. This enormous potential is now being understood by foreign investors. who are interested in urban renewal projects such as Tama 38 and Pinui binui projects.

Tama 38, or National Outline Plan 38, is the national outline plan for the seismic strengthening of existing buildings. Pinui binui ("evacuation and reconstruction") is a process that permits the replacement of old housing complexes and their outdated infrastructures with modern and innovative infrastructures as part of urban rejuvenation.

According to President of the Israel Builders Association Raul Sarugo, "All our guests from overseas are interested in investing in Israeli real estate in all segments of the industry: income yielding real estate, commercial, logistical centers, residential hotels, and assisted living facilities. There was a group from Uruguay that showed interest in investing in Tama 38 projects in Herzliya.

During the conference, the participants also discussed the effects of the Russia-Ukraine war, both current and in the future, on the real estate industry.

"The war will end at some time," said Sarugo, "and Ukraine will have to be rebuilt. It will be a global challenge and there is no doubt that the Israel Builders Association will be actively involved in the rehabilitation of Ukraine, through technological and logistical means, and with the recycling of materials. The destruction is enormous and as a result, there are huge amounts of rubble. They will need Israeli companies who know how to separate materials and recycle them for use as building materials."

"We have two major problems," explains Irwin Perret, the president of CICA, tells Israel Hayom Real Estate. "The increasing costs of raw materials as a result of the coronavirus pandemic and the Russia-Ukraine war. Many raw materials used to come from Russia, and for the foreseeable future, they will not come from there anymore. So this will impact and increase prices drastically.

"Even if new players enter the market, building costs will not return to the levels they were two years ago.  Inflation is higher in the construction industry and has reached levels of about 40% for raw materials. The solution is, among other things, in construction technologies that will enable less intensive use of labor and raw materials. These technologies are more cost-efficient and faster, and for the most part, reduce costs."

Moshe Perets, chairman of the Foundation for the Encouragement and Development of the Construction Industry in Israel said during the conference: "Given that the industry currently employs some 300,000 Israeli workers, foreign workers, and Palestinians, then every event, no matter what, has an immediate effect on the industry and the financial markets and is included in home prices. We must invest in technologies that will be able to assist in any crisis in the future and reduce dependence on manpower.

The Foundation for the Encouragement and Development of the Construction Industry has a goal of promoting safe construction in Israel and will continue to examine solutions, including technological solutions.

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

The event hosting CICA was the first of its kind in Israel and points to the growing overseas ties formed by the Israel Builders Association.

The Confederation of International Contractors' Associations was established in 1974 in Tokyo, but today it is headquartered in Paris. CICA represents the construction industry around the world and it brings together continental federations of contractors' associations: The European Construction Industry Federation (FIEC) and the Inter-American Construction Federation (FIIC). CICA members include national organizations from various regions, such as the Overseas Construction Association of Japan (OCAJI) and the Israel Builders' Association, and it represents and speaks for the global construction industry on matters on its agenda.

This article might include sponsored and commercial content/marketing information. Israel Hayom is not responsible for its nature or its credibility. The publication of such content or information shall not be considered a recommendation and/or an offer by Israel Hayom to purchase and/or use the services or products mentioned in this article.

The post Israeli Builders Association says will participate in rehabilitation of Ukraine appeared first on www.israelhayom.com.

The government is stepping up its efforts to combat accidents in the construction sector: Last week, Deputy Minister of the Economy MK Yair Golan announced a planned revolution in the field of work safety in Israel. As part of the program, a new authority will be founded for work safety and occupational health. The authority will bring together all the governmental agencies involved in work safety and will adopt the "Safety Stars" program.

Follow Israel Hayom on Facebook and Twitter 

Golan made the announcement at a conference of the Construction and Infrastructure Sector Safety Headquarters operated by the Foundation for the Encouragement and Development of the Construction Industry, the General Organization of Workers, and the Israel Builders Association. The conference was attended by representatives of about 200 construction companies from all over the country and all fields of construction, alongside regulators in the industry.

According to the new initiative led by Golan, in addition to founding the new authority, the government will introduce changes in the ways in which work safety planning, training, and enforcement procedures are carried out. The highlight of the activity will be legislating a Basic Law on work safety.

"We're entering a period of transition from animosity to partnership between the training and enforcement agencies and construction companies in Israel," said MK Golan at the conference. "Our program will incorporate training, supervision, and compensation for excellence in the field of work safety. One of the steps will be to adopt the 'Safety Stars' program led by the Construction Sector Safety Headquarters, which will gradually become mandatory for all contractors in Israel."

The deputy minister added: "Two issues that have to change as part of the reform involve the collection and processing of data, and the publication of conclusions among all those involved in planning, construction, and enforcement. I'm not happy with the current state of enforcement and it will improve with the new law, which will organize responsibility and authority over work safety. But it is also necessary to grant recognition and compensation to those who invest efforts in this field.

Alongside cooperation with the sector itself, we also need to collaborate with the relevant government ministries – the Housing Ministry, the Ministry of Interior, and the Ministry of Agriculture. Local government should also be involved in the war on work accidents, based on the understanding that local authorities are responsible for what happens in their territory."

Raul Srugo, President of the Israel Builders Association and the Foundation for the Encouragement and Development of the Construction Sector, which operate the sector's Safety Headquarters, said: "We at the Builders Association changed our approach to safety years ago. We can see the change gradually seeping in at a great many construction sites.

"We budget the Foundation for Encouragement and Development and will continue to invest high sums in order to finance activities meant to save workers' lives." He added: "The government's involvement, led by Yair, is crucial. The contractors must send workers to safety training programs twice – all of them. In the coming year we will lay emphasis on working with small contractors and eliminating the phenomenon of companies that are not listed in the Contractors Registry yet were inspected according to law before beginning construction."

Head of the Construction and Infrastructure Sector Safety Headquarters Maj. Gen. (ret.) Eyal Ben-Reuven: "The 'Safety Stars' program, which Yair decided to implement nationally, is a culture-changing program that, in its first year of operation, has already been adopted at hundreds of construction sites throughout the country.

"The program includes planning, management, special training, and in-depth learning of investigative processes meant to prevent accidents, performed with us by former senior officers in the Air Force. Its results can already be felt on the ground. We believe that the decision of the Deputy Minister of the Economy will bring a surge of activity in the construction and infrastructure sector geared towards accident prevention, the results of which will be felt immediately on the ground."

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

Itzhak Moyal, chairman of the Construction and Allied Industries Workers Union, said at the conference: "We're fully cooperating with the Builders Association, and together we're leading the safety revolution. The government and the Knesset have announced their wish to be part of the revolution. I'm glad the Workers Union is involved not only in the activity itself but also budget-wise and in allocating resources to make sure workers are safe. The road is long, and we have to complement the step taken by Deputy Minister Golan with professional training."

This article might include sponsored and commercial content/marketing information. Israel Hayom is not responsible for its nature or its credibility. The publication of such content or information shall not be considered a recommendation and/or an offer by Israel Hayom to purchase and/or use the services or products mentioned in this article.

The post Government to advance work safety legislation   appeared first on www.israelhayom.com.

The big "party" thrown in New York recently was held at the Jacob Javits Center. Every year the center hosts the International Retail Exhibition. This year, daunted by the COVID-19 pandemic, the center has been converted to a huge vaccination site. The New York real estate industry is watching closely, hopeful and expectant as if its salvation lies in the immunized herd.

Follow Israel Hayom on Facebook and Twitter 

Last year ended in a major decline in rent prices on residential properties in central Manhattan, with prices in some cases dropping 30%. The scope of investments in Manhattan real estate shrunk by 51% in 2020 compared to 2019, and a similar drop was reported in New York's income-producing real estate market. This constitutes a record drop, surpassing that of the 2008 Great Recession by 20%.

At the end of 2020, 14.5% of properties in Manhattan stood vacant. This situation shifted the balance between landlords and tenants, with the latter now taking the driver's seat. For now, it is unclear when the New York real estate market will bounce back to its thriving, pre-pandemic levels and when property owners and tenants will resume negotiations.

Whatever happens in New York is the archetype for Tel Aviv. The "city that never sleeps" is currently in a coma. Many tenants have left, leading to a 61% rise in the number of available apartments in the third quarter of 2020. Property owners have suffered a loss of income, with rent prices dropping about 9%.

Property owners in New York are preparing for "the day after," planning to reorganize and offer properties that are a blend of home-office-balcony, which will fulfill three needs: work, privacy, and social distancing.

In Tel Aviv, that kind of thinking is almost inconceivable. Real estate investors have already proven that they rent out apartments in any condition and at any price. Moldy, with leaking faucets, washbasins doubling as kitchen sinks, toilets in the stairwell, loose ceiling boards – these are just some examples of the incompetence of apartment owners in the maintenance of their properties.

In the meantime, many property owners in Israel and in New York have been following the news religiously, regularly checking the number of infected and recovering patients and the effect of vaccines, and awaiting the green light that will signal a return to normal. But who can say if that light will ever shine?

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

Will Tel Aviv regain its former glory? Will it again become a refuge for the young, for single mothers, gays, lesbians, and other homogenous communities? Lacking places for leisure, recreation, commerce, and employment, it is not at all clear whether all the special populations that have flocked to the city in recent years will return.

In the stable real estate sales market, which previously reported rising prices, the coming years will be marked by sales of investors' properties – mostly those who had used mortgage funds to invest in an apartment. The coronavirus may thus achieve what the government has not been able to do in years – drive investors away from the city. A little justice will do no harm.

This article might include sponsored and commercial content/marketing information. Israel Hayom is not responsible for its nature or its credibility. The publication of such content or information shall not be considered a recommendation and/or an offer by Israel Hayom to purchase and/or use the services or products mentioned in this article.

The post From NYC to Tel Aviv, property owners hope for real estate comeback appeared first on www.israelhayom.com.